Corruption Yesterday, Today, and Tomorrow: The Need for Anti-corruption Recovered Funds and Assets Investment Management Commission in Nigeria
Keywords:
Corruption Recovered Funds, Asset and Investment Management, Sustainable Development, Accountability and Transparency, Anti-Corruption InitiativesAbstract
Corruption has been a pervasive and deeply entrenched issue in Nigeria, impeding the nation's progress and undermining its development aspirations. Despite efforts to combat corruption, the effective management and utilization of recovered funds and assets have remained a significant challenge. This paper examines the theoretical foundations of principal-agent theory and institutional theory to understand the dynamics of corruption and the role of institutional frameworks in promoting transparency and accountability. It analyzes the economic, social, and political consequences of corruption in Nigeria, quantifying its staggering costs. The paper provides valid empirical evidence for the establishment of an Anti-Corruption Recovered Funds and Assets Investment Management Commission as a potential solution to the contemporary problem. In addition, global best practices for managing recovered funds were examined to provide a basis for the paper’s core argument. The proposed commission's mandate, structure, functions, and responsibilities are discussed, including asset recovery, transparent investment strategies, effective application of funds in development-related areas, monitoring and evaluation mechanisms, and public reporting. Potential challenges and concerns associated with establishing the commission are addressed, such as legal and regulatory requirements, ensuring independence, securing funding, and building public support. The paper concludes by emphasizing the potential long-term benefits of the commission, including unlocking resources for sustainable development initiatives, fostering public trust, and promoting good governance while combating the root causes of corruption.
References
Adebanwi, W., & Obadare, E. (2011). The abrogation of the electorate: An antiquarian exploration in the
Nigerian crisis of legitimation. The Journal of Modern African Studies, 49(3), 421 449. https://doi.org/10.1017/S0022278X11000202
Agbiboa, D. E. (2015). Corrupting democracy: Revisiting oligarchs, crime and kleptocracy in Africa. Commonwealth & Comparative Politics, 53(3), 342-366. https://doi.org/10.1080/14662043.2015.1051684
AGRASC. (n.d.). Présentation de l'Agence. https://www.agence-gp.fr/presentation-agence/
Akande, W. A. (2021). Corruption and the development of the Nigerian state: A historical perspective. Journal of Contemporary African Studies, 39(4), 517-533. https://doi.org/10.1080/02589001.2021.1905595
Andvig, J. C., Fjeldstad, O. H., Amundsen, I., Sissener, T., & Søreide, T. (2000). Research on corruption: A policy oriented survey. Chr. Michelsen Institute (CMI) & Norwegian Institute of International Affairs (NUPI).
Bardhan, P. (1997). Corruption and development: A review of issues. Journal of Economic Literature, 35(3), 1320-1346.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160. https://doi.org/10.2307/2095101
EFCC. (2017). Nigerian Economic and Financial Crimes Commission: Annual Report 2017 https://www.efcc.gov.ng/efcc/
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57-74. https://doi.org/10.5465/amr.1989.4279003
Federal Office of Justice. (n.d.). Restitution of Illicit Assets (RILA). https://www.bj.admin.ch/bj/en/home/themen/wirtschaft/potentatengelder.html
FRISCO. (n.d.). Sobre la FRISCO. https://www.frisco.gov.co/sobrela-frisco/
Gailmard, S. (2014). Accountability and principal-agent theory. In M. Bovens, R. E. Goodin, & T. Schillemans (Eds.), The Oxford Handbook of Public Accountability (pp. 90-105). Oxford University Press.
Gillies, A. (2011). The Abacha loot. Journal of Money Laundering Control, 14(4), 321-334. https://doi.org/10.1108/13685201111173796
Gillies, A. (2015). The management of recovered assets: A comparative study of institutional frameworks. Journal of Financial Crime, 22(4), 417-432. https://doi.org/10.1108/JFC-12-2014-0058
Greenberg, T. S., Salisbury, S. W., Briggs, M. A., & Minor, M. (2009). Recovering assets: Avoiding costly mistakes. Journal of Money Laundering Control, 12(4), 327-345. https://doi.org/10.1108/13685200910995630
Greenberg, T. S., Samuel, L. M., Grant, W., & Rendon, L. M. (2010). Recovering stolen assets: A persisting challenge. RAND Corporation.
Helmke, G., & Levitsky, S. (2004). Informal institutions and comparative politics: A research agenda. Perspectives on Politics, 2(4), 725-740. https://doi.org/10.1017/S1537592704040472
Idowu, A., & Obasan, K. A. (2012). Anti-money laundering policy and its effects on bank performance in Nigeria. Business Intelligence Journal, 5(2), 367-373.
Ijewereme, O. B. (2015). Anatomy of corruption in the Nigerian public sector: Theoretical perspectives and some empirical explanations. SAGE Open, 5(2), 1-16. https://doi.org/10.1177/2158244015581188
Independent Corrupt Practices and Other Related Offences Commission (ICPC). (2019). Report on the management of recovered assets in Nigeria (2015-2018). ICPC.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kar, D., & Cartwright-Smith, D. (2010). Illicit financial flows from Africa: Hidden resource for development. Global Financial Integrity.
Klitgaard, R. (1988). Controlling corruption. University of California Press.
Ministry of Finance of the Republic of Kazakhstan. (n.d.). National Fund for Confiscated Assets. https://www.gov.kz/memleket/entities/mfnrk/activities/73/info?lang=en
National Crime Agency. (n.d.). Proceeds of Crime Centre (POCC). https://www.nationalcrimeagency.gov.uk/what-we-do/how-we-work/providing-specialist-capabilities-for-law-enforcement/proceeds-of-crime-centre-pocc
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.
Obuah, E. (2010). Combatting corruption in Nigeria: The Nigerian Economic and Financial Crimes Commission (EFCC). African Studies Quarterly, 12(1), 17-44.
Odukoya, A. (2019). The impact of corruption on the economic development of Nigeria. Journal of Economics and Sustainable Development, 10(23), 1-9.
Ogundiya, I. S. (2009). A nation in the wilderness: Corruption, elite conspiracy, and the way forward for Nigeria [Public lecture series]. The Covenant University Public Lecture Series, 1(1), 1-27.
Ogundiya, I. S. (2010). Democracy and good governance: Nigeria's dilemma. African Journal of Political Science and International Relations, 4(6), 201-208.
Ogundiya, I. S. (2020). The anti-corruption crusade in Nigeria: An appraisal of the Buhari administration's reform agenda. Commonwealth & Comparative Politics, 58(3), 302-323. https://doi.org/10.1080/14662043.2020.1735284
Olken, B. A., & Pande, R. (2012). Corruption in developing countries. Annual Review of Economics, 4(1), 479-509. https://doi.org/10.1146/annurev-economics-080511-110917
Omoteso, K. (2019). The challenges of corruption and the Nigerian accountability infrastructure. Accounting, Auditing & Accountability Journal, 32(7), 2051-2069. https://doi.org/10.1108/AAAJ-07-2017-3008
PwC Nigeria. (2014, March 25). Impact of Corruption on Nigeria's Economy. https://www.pwc.com/ng/en/assets/pdf/impact-of-corruption-on-nigerias-economy.pdf
Scott, W. R. (2008). Institutions and organizations: Ideas and interests (3rd ed.). Sage Publications.
Shehu, A. Y. (2015). Promoting transparency and accountability for sustainable democracy in Nigeria: The role of the judiciary. Commonwealth Law Bulletin, 41(3), 416-437. https://doi.org/10.1080/03050718.2015.1064308
Transparency International. (2022). Corruption Perceptions Index 2022. https://www.transparency.org/en/cpi/2022
Transparency International. (2023). What is corruption? https://www.transparency.org/en/what-is-corruption
United States Department of Justice. (n.d.). Asset Forfeiture Program. https://www.justice.gov/afp
World Bank. (2017). Sovereign wealth funds and sustainable development: An empirical analysis. World Bank Policy Research Working Paper No. 8305. https://openknowledge.worldbank.org/handle/10986/29490
World Bank. (2019, October 10). Corruption Perception Index 2019: Nigeria. https://data.worldbank.org/indicator/IQ.CPA.TRAN.XQ?locations=NG
World Bank. (2020). Paying bribes to get things done: Sub-Saharan Africa's enterprises face the highest costs globally. https://databank.worldbank.org/databases/control-of-corruption
World Bank. (2023, April 18). World Development Indicators: Nigeria. https://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS?locations=NG
World Bank. (2024). Doing Business. https://archive.doingbusiness.org/en/doingbusiness
